Northern Division: Serving every county in Minnesota and North Dakota
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Donating stock or IRA funds = big tax savings

Added on Monday, December 26, 2016

Anyone who donates to The Salvation Army via check or by giving online receives a receipt they can use for their taxes. But these giving options aren’t the only ones that could lead to significant deductions on your 2016 tax returns.

Many of our donors in Minnesota and North Dakota are surprised to know they can also give stock, mutual funds, and IRA funds. Making these types of donations is easy, and all of them feature excellent tax benefits.

Here’s a closer look:

Giving stock or mutual funds

Donating stock or mutual funds requires little more than two simple phone calls: one to your broker, and one to The Salvation Army at 651-746-3504 or 800-456-4483. Arrangements will be made to transfer your gift into a Salvation Army account.

Those who donate stock or mutual funds can enjoy remarkable tax benefits. For example, a woman recently called us to donate $5,000 worth of stock, having originally purchasing the shares for $2,000.

“She will get to make a $5,000 gift that only cost her $2,000,” said David Overstake, Planned Giving director for The Salvation Army Northern Division. “She receives the benefit of the market value of the stock today, she bypasses gain taxes, a she receives a charitable deduction. That is smart giving.”

Donating from your IRA

If you are at least 70½ years old, you can donate tax-free from your traditional or Roth IRA.

Portrait of senior citizenDonations from your IRA can be made in any amount, from $100 up to $100,000. These gifts can count toward your IRA minimum withdrawal amount for the year, yet they do not count as taxable income.

“This type of gift has great upside,” Overstake said. “Not having to realize the income from your Required Minimum Distribution (RMD) means less taxable income, and the tax savings allow you to stretch your dollars further. In turn, The Salvation Army is able to serve more people.”

The most important stipulation of donating from your IRA is that your gift must be transferred directly from your IRA to The Salvation Army.

To learn more about changing lives by donating stock, mutual funds or IRA funds, please call 651-746-3504 in the Twin Cities or toll free at 800-456-4483 in North Dakota or Greater Minnesota. Additional information can be found on our Planned Giving webpage.